’d anced ­ar„et ‡re­iu­s grow faster t‚an Ž“† North merica“ lie premiums rebound‰ nonŽlie growth strengthens Life insurance ”ie premiums in the ‹„ rebounded in n the ‹„‰ lie premiums rebounded by 3…¡ˆ in 201 †201’“ –2…0ˆ‡… ndividual lie 201‰ driven by stronger group and business advanced at a healthy pace‰ driven by robust increases in universal lie and individual lie sales… whole lie sales due to attractive product guarantees… ter two years o declines‰ premiums in the group lie and annuity segment surged‰ supported by stronger income and employment growth… ”ow interest rates and returns rom alternative investments led to lower investment yields… n addition‰ actuarial reviews led to lower interest rate assumptions and conse«uent reserve increases… The industry’s ˜¢E‰ at 11ˆ‰ was unchanged and still short o preŽcrisis levels o around 1ˆ… —apital levels remained solid at most companies… n —anada‰ macroeconomic headwinds intensiied with premium growth slowing to 2…¡ˆ in 201… roup sales remained strong‰ and new individual protection products contributed to growth †eg‰ universal lie products‡… Œhole lie policies also remained attractive‰ particularly participating policies… ndividual annuities contracted due to adverse inancial marets which also pressured lie insurers’ investment income‰ dragging ˜¢E to …ˆ †201’“ 11…6ˆ‡… This year‰ ‹„ lie insurer proitability n the ‹„‰ growing employment and consumer spending should support demand or will remain under pressure… insurance in 2016… Œith interest rates expected to remain low and inancial maret volatility to linger‰ industry proitability will remain under pressure… ”ie insurers will continue to ocus on improving capital management‰ lowering expenses and enhancing investment yields… n —anada‰ premium growth should improve alongside the economy and reach trend growth in 201ƒ… €roitability will remain stable and capitali§ation solid… new capital ramewor expected in midŽ2016 †implementation in 201‡ is not expected to change the assessment o industry capitali§ation… Non-life insurance NonŽlie premiums continued to grow in n the ‹„‰ nonŽlie premiums grew by 3…1ˆ in 201‰ despite a still sot pricing the ‹„ and —anada in 201‰ despite sot environment… rowth was strongest in commercial auto and inland marine‰ ollowed pricing in the ‹„… by general liability and worers compensation… ‘owever‰ overall premiums in personal lines grew more strongly than in commercial lines‰ with pricing down in the Nort‚ ’­erica ‡re­iu­s• 2015 latter… ccident and health † ™‘‡ premiums grew only slowly ater a steep drop in Œorld 201’ due to a reclassiication o a company as a health insurer… €roitability beneited ‹„­ bn maret share rom reserves releases‰ though at a slower pace than in the previous year‰ and rom ”ie 602 2’ˆ benign catastrophe losses‰ but investment income stagnated… ¢verall sector ˜¢E NonŽlie 2¡ ’1ˆ declined to 6…¡ˆ in 201… n —anada‰ nonŽlie premiums grew by ’…2ˆ in 201‰ up rom 1…3ˆ growth in 201’‰ despite economic headwinds… ‚ost maŠor lines 5% Real premium growth contributed‰ but liability and property premiums were particularly strong‰ supported by select rate increases‰ as were ™‘ premiums… ‚otor premiums grew slower than 4% the total but aster than in 201’‰ as reorms in ¢ntario continued to weigh… 3% ‹nderwriting proits o —anadian nonŽlie insurers were supported by accelerating 2% premium growth and lac o any maŠor catastrophe activity… —oupled with a moderate investment result‰ industry ˜¢E improved to 11…’ˆ rom 10…6ˆ in 201’… 1% 0% rowth o ‹„ nonŽlie premiums is expected to slow slightly in 2016 and 201ƒ in the ace o ongoing pricing pressures… ˜ates are expected to weaen in most commercial –1% lines and even become negative or several lines… n improving economy and rising –2% inlation will liely reduce the eect o reserves releases and possibly turn to reserve –3% strengthening in 201ƒ… ˜¢E is expected to continue to all due to sotening rates and LifeNon-life the low interest rate environment‰ and assuming normal catastrophe activity… €remium growth in —anada is expected to slow in 2016 relecting the modest Growth rate 2015 economic bacdrop‰ beore slowly picing up in 201ƒ and beyond… ndustry Pre-crisis average growth 2003–2007 proitability will liely also ease slightly… Post-crisis average growth 2009–2014 2’ Swiss Re sigma No 3/2016